Legislature passes state operating budget

MONTGOMERY -- The state Legislature this afternoon passed an operating budget and related spending bills for non-education state agencies.

The Senate approved the budget 28-4, and the House of Representatives later concurred in changes senators made to a previously approved plan. The plan now goes to the governor for his signature.

The bills would spend $11.2 billion in the year starting Oct. 1. That includes a record $1.83 billion from the General Fund, an increase of $140.41 million over this year. That also includes $9.37 billion in federal Medicaid grants, state fuel taxes and other money earmarked for specific agencies.

The operating budget includes $62.8 million to pay next year's cost of a 3.5 percent pay raise for the roughly 37,000 employees of non-education state agencies. Senators also approved another 3.5 percent raise for those employees starting Oct. 1, 2008, which will cost taxpayers another $65 million a year.